imported post
"...shall not prohibit or interfere with...the possession of a machine gun other than one adapted to use pistol cartridges for a purpose manifestly not aggressive or offensive."
I read that as rifle cartridge machineguns are okay, but submachineguns are not. That still doesn't exempt from the federal restrictions as far as I can tell. Looks like more sloppy lawmaking to me...
edit: In fact, if you read that last phrase, it specifically exempts rifles cartridge machineguns for purposes that are "manifestly aggressive or offensive." They should have used commas to make it read: "...shall not prohibit or interfere with...the possession of a machine gun, other than one adapted to use pistol cartridges, for a purpose manifestly not aggressive or offensive."